A Share of Common Stock Has a Current Price of $82.50

question 61

Multiple Choice

A share of common stock has a current price of $82.50 and is expected to grow at a constant rate of 10 percent. If you require a 14 percent rate of return, what is the current dividend on this stock?

• A) $2.81
• B) $3.00
• C) $4.29
• D) $4.75
• E) $6.13

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Definitions:

Phosphorylation

A biochemical process that involves the addition of a phosphate group to a molecule, such as a protein, which can alter the molecule's function.

Post-Translational Modification

A biochemical process that occurs to a protein after it has been synthesized, altering its function.

Transcription Factor

A protein that regulates gene expression by binding to specific DNA sequences, thus controlling the transfer of genetic information from DNA to mRNA.

RNA Polymerase

An enzyme responsible for transcribing RNA from a DNA template, playing a vital role in gene expression.